Australia targets social media ads in scam crackdown

Australia extends crackdown on scam websites to include social media ads amid rising crypto fraud. Since gaining takedown powers two years ago, the ASIC has shut down over 14,000 investment scam and phishing websites, averaging about 130 removals weekly.

In the past six months, the commission has cited AI-washing, scam website templates, exploitation of third parties, fake news articles, and cloaking as the most used investment website scam tactics. Its 2024 review also sounded the alarm over deepfakes and other AI-generated images, warning they make it even trickier for people to identify scams.

ASIC warns people to take extra precautions before investing

Australian authorities claim investment scams are becoming more sophisticated and more damaging. Since July 2023, ASIC has organized the removal of over 14,000 scam websites and advertisements, with at least 3,000 scams being associated with crypto. Now it is expanding its takedown powers to cover social media ads.

ASIC Deputy Chair Sarah Court said while the regulator’s traditional tools, including investigations, court action, and administrative enforcement, are still important, they are not enough to combat the rise of online scams. The regulator’s ability to takedown websites was an example of how ASIC was evolving to deal with the challenges and to help protect Australians from fraudsters, she added.

She added that the expansion to cover social media ads will help to block more scammers from steering people toward online investment scams and protect Australian consumers.

She further asked Australians to be cautious, noting that much still needs to be done. So far, investment scams remain the biggest driver of financial losses among Australians, with the National Anti-Scam Centre estimating $945 million lost in 2024 alone. While the losses are down 25.9% compared with 2022’s record of $3.1 billion, the commission still insists on consumer vigilance as scam tactics continue to evolve.

The commission also urged Australians to take their time before making investment decisions, avoid relying on AI-generated safety assurances, and steer clear of offers made through social media platforms such as WhatsApp and Telegram. Moreover, it asked users to check if the company they want to invest in is licensed.

ASIC reports $57.5 million in H1 penalties

According to the ASIC’s latest update, the year’s first six months resulted in six convictions and $57.5 million in civil penalties. Among the penalties was an $8 million fine for Firstmac Limited, marking the first enforcement action against a distributor for DDO non-compliance.

The Supreme Court of NSW also imposed $16.8 million in penalties on Allianz Australia Insurance Limited and AWP Australia Pty Ltd after finding them guilty of making false or misleading statements. The court determined that from 2016 to 2018, Allianz and AWP misrepresented aspects of their travel insurance by publishing misleading information on Allianz’s domestic and international travel insurance web pages.

HCF Life Insurance Company Pty Limited (HCF) was fined a penalty of $750,000 and asked to publish corrective disclosures after finding that a pre-existing condition clause in some of its policies would likely mislead consumers. Additionally, the regulator sued Choosi in June 2025 for falsely claiming that it compared products from various funeral and life insurers. 

The smartest crypto minds already read our newsletter. Want in? Join them.